I few months ago I had to lower my coffee consumption and was struggling to find the best way to “force” myself to do so. Nothing major prompted the change, but wanted a catalyst to really stop. I have been following Bitcoin and other cryptocurrency for awhile, and thought I would use this as a way to get more. In looking at all my options I figured out a way to turn coffee into Bitcoin…sort of.
To really motivate myself I figured I would lower my costs by stopping purchasing coffee every day (easy!) but then divert funds into purchasing Bitcoin dollar cost averaging into the currency (hard!). This prompted me to start looking for a recurring purchase into a cryptocurrency that was liquid and growing and quickly settled on BTC. They say that using Bitcoin is key to its success and by purchase more and forcing a use case, I can help the overall ecosystem better. Having more will create usage, which will create value in the network, which will drive more use and hopefully the ecosystem as a whole.
Enter Coinbase (they have a referral program!) which is a great solution for setting up a reoccurring payment buy in platform. Below is what I setup to
The trick to dollar cost averaging into more Bitcoin was setting up a simple reoccurring transaction every week. This would prevent me from making a few coffee purchases (let’s be honest — about 1 in some places in NYC) and built my BTC balance. While not the most economical approach, Coinbase has their fee structure, it has really worked. I have been doing this for the past 6–9 months and it has worked well. Inadvertently I have lowered my spending habits too, being in less stores and coffee shops which evens out the fees a bit.
The question of course is where to store things, and I may wait for another post for that. In the interim BTC/USD has been trending in the right direction — although technically I shouldn’t care as I am now better equipped to weather a downturn.
While I am not quite there yet, I was partly inspired by my friend Steve
@fredwilson 18 months ago I invested 1 month's rent in bitcoin. now it's worth 2 month's rent. eventually it will be year's worth.
— Steve Weiner (@steve_wein) May 21, 2016
I think it is entirely possible that the value generated from purchases will yield a result, I think it’s far more likely that I will spend it first thus helping the ecosystem as a whole.
I have always been a tinkerer, and to really understand something you need to use it — this project has given me a great solution to coffee consumption and a BTC balance to spend on things.